If you decide to file for bankruptcy, you should ask an attorney about the Means Test, an artificial test for Chapter 7 cases that assesses your average income and expenses for the past six months. This can help you determine which bankruptcy chapter is best for you.
Keep in mind that there are some debts that bankruptcy will not erase. This includes child support and alimony, fines, some taxes, falsely acquired debts, student loans, and debts not listed on your bankruptcy petition.
Check with a bankruptcy attorney to make sure the debts causing you the most trouble can be discharged. For example, most student loans - a source of financial difficulty for many - cannot be discharged in a bankruptcy.
In a Chapter 13 bankruptcy, you file a plan showing how you will pay off a portion of your debts over the next 3-5 years. As long as you're making your required payments, Chapter 13 allows you to keep your home and your car.
Filing for bankruptcy should put an end to debt collection calls and letters. You should inform any collectors who contact you that you have filed for bankruptcy, and provide them with the name of the attorney handling your case.
Did you know that filing for Chapter 13 bankruptcy can prevent debtors from seizing your possessions? Ask a bankruptcy attorney if you qualify for Chapter 13 bankruptcy and how it can help you consolidate your debts.